Helmerich & Payne, Inc. (HP) vs Valaris Limited (VAL)

Helmerich & Payne, Inc. and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.8B against $3.8B — 1.5× the size. Helmerich & Payne, Inc. has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.3×. Helmerich & Payne, Inc. grew revenue faster over the last twelve months: 16.6% against −13.2%. Valaris Limited has the higher net margin (44.0% vs −3.43%) and the higher return on invested capital (4.00% vs 1.32%). Across the 20 metrics below, Helmerich & Payne, Inc. leads on 11 and Valaris Limited on 9.

Valuation

Metric HP VAL Oil & Gas Drilling median
P/E n/m 6.34 —
P/S 0.94 2.77 1.45
P/B 1.40 1.84 1.40
Price to free cash flow 7.64 40.42 16.15
EV/EBITDA 6.45 22.13 8.53
EV/Sales 1.34 4.20 2.37
Earnings yield (3.77%) 15.77% (2.00%)
Free cash flow yield 13.09% 2.47% 3.55%

Profitability

Metric HP VAL Oil & Gas Drilling median
Gross margin 28.82% 24.78% 39.29%
Operating margin 2.25% 11.27% 7.77%
Net margin (3.43%) 43.95% 0.00%
Free cash flow margin 12.25% 6.85% 4.46%
Return on equity (4.95%) 33.85% (2.78%)
Return on assets (2.08%) 18.88% (1.64%)
Return on invested capital 1.32% 4.00% 2.29%

Growth

Metric HP VAL Oil & Gas Drilling median
Revenue growth (TTM) 16.57% (13.22%) 4.14%
EPS growth (last fiscal year) (148.40%) 172.18% (46.88%)
Revenue growth, 5-year CAGR 16.13% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HP VAL Oil & Gas Drilling median
Debt to equity 0.70 0.34 0.61
Current ratio 1.96 1.55 1.89
Net debt to EBITDA 2.87 0.78 0.90

Dividend

Metric HP VAL Oil & Gas Drilling median
Dividend yield 2.67% — —
Payout ratio — — —

Size

Metric HP VAL Oil & Gas Drilling median
Market cap 3.77b 5.82b 3.77b

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